Core Viewpoint - Texas Instruments has shown a strong recovery with a 20% stock return since April, significantly outperforming the S&P 500, and is positioned for future growth through strategic investments and capital allocation [2][28]. Group 1: Company Performance - Texas Instruments has returned 436% over the past ten years, although this is less than the iShares Semiconductor ETF's 902% return [2]. - The company has faced challenges post-pandemic, particularly due to its limited exposure to the AI sector, which has driven semiconductor demand [4]. - Despite these challenges, investor confidence is returning as the company’s investments are expected to yield significant returns [4]. Group 2: Capital Allocation - Texas Instruments is recognized for its superior capital allocation, having spent $94 billion from 2014 to 2023, which is about 50% of its current market cap [5]. - The company has also returned nearly $50 billion to shareholders through dividends and buybacks, achieving a 20-year streak of dividend growth with a ten-year CAGR of 17% [5][7]. - The current dividend yield stands at 2.6% with an 80% payout ratio, and the company has repurchased nearly half of its shares since 2004 [7][9]. Group 3: Investment and Growth Strategy - Texas Instruments is increasing its capital expenditures, spending approximately $5 billion annually in 2024 and 2025 to enhance manufacturing capabilities [16]. - The company is focusing on automation, electrification, and safety, with 75% of its revenue derived from automotive and industrial markets [14]. - Major projects like RFAB2 and LFAB1 are expected to significantly boost production capacity and efficiency, preparing the company for future demand surges [18][21]. Group 4: Financial Projections and Valuation - Analysts project Texas Instruments could achieve revenues between $24 billion and $26 billion by 2026, with potential EBITDA of $13 billion, reflecting a strong growth trajectory [21][23]. - The company maintains a strong balance sheet with expected net debt of $5.4 billion by 2026, equating to just 0.4x EBITDA, and holds an A+ credit rating [23]. - The stock is currently valued at a fair multiple of 14.6x EBITDA, with a potential price target of $250, representing a 24% upside from current levels [25].

Company Performance - Texas Instruments (TXN) closed at $199.99, reflecting a -1.78% change from the previous session, underperforming the S&P 500's daily loss of 0.88% [1] - Over the past month, TXN shares gained 2.33%, lagging behind the Computer and Technology sector's gain of 9.48% and the S&P 500's gain of 5.11% [1] - The upcoming earnings report on July 23, 2024, is projected to show earnings of $1.16 per share, a year-over-year decline of 37.97%, with revenue expected at $3.8 billion, reflecting a 16.15% fall from the same quarter last year [1] Annual Forecast - The Zacks Consensus Estimates for the entire year forecast earnings of $5.13 per share and revenue of $15.74 billion, indicating changes of -27.44% and -10.18% compared to the previous year [2] Analyst Estimates and Valuation - Texas Instruments currently holds a Zacks Rank of 4 (Sell), with the Zacks Consensus EPS estimate remaining steady over the past month [3] - The company has a Forward P/E ratio of 39.7, which is a premium compared to the industry average Forward P/E of 30.1 [3] - TXN's PEG ratio stands at 4.41, significantly higher than the industry average PEG ratio of 2.7 [3] Industry Overview - The Semiconductor - General industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 101, placing it in the top 41% of over 250 industries [4] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [4]

DALLAS, July 8, 2024 /PRNewswire/ -- Texas Instruments Incorporated (TI) (Nasdaq: TXN) will webcast its second quarter 2024 earnings conference call on Tuesday, July 23, at 3:30 p.m. Central time. Haviv Ilan, president and chief executive officer, Rafael Lizardi, senior vice president and chief financial officer, and Dave Pahl, vice president and head of Investor Relations, will discuss TI's financial results and answer questions from the investor audience.You can access the audio webcast on the Investor Re ...

trait2lumiere TXN's Investment Thesis Remains Expensive Here - No Margin Of Safety We previously covered Texas Instruments (NASDAQ:TXN) in January 2023, discussing its robust profit margins and expanded R&D returns due to the mature nodes' longer product life cycle of up to 15 years. Combined with the potential benefits from the Chips Act, tempering some of the $30B Capex headwinds, we had believed that it offered a compelling diversification thesis for those looking to buy semiconductors stocks. Even s ...

DALLAS, June 21, 2024 /PRNewswire/ -- Texas Instruments (TI) (Nasdaq: TXN) today announced a long-term collaboration with Delta Electronics, a global power and energy management manufacturer, to create next-generation electric vehicle (EV) onboard charging and power solutions. This work will leverage both companies' research and development capabilities in power management and power delivery in a joint innovation laboratory in Pingzhen, Taiwan. Together, TI and Delta aim to optimize power density, performan ...

Group 1 - Texas Instruments (TI) has underperformed the S&P 500 and the semiconductor industry over the past three years, but its stock has rallied nearly 20% since April 2024 [1] - Elliott Management disclosed a $2.5 billion stake in TI and proposed cutting back on capital expenditures to return to free cash flow-per-share growth [2][3] - TI management had previously planned to increase capital expenditures to an average of $5 billion per year through 2026, but this elevated spending coincided with a decline in revenue and profitability due to a shift from chip shortage to oversupply [3][4] Group 2 - In Q1 2024, TI's revenue and GAAP operating profit decreased by 16% and 34% respectively compared to the previous year, continuing a trend of declines from 2023 [4] - Despite the need for expansion and modernization of facilities, TI's aggressive capital spending plans have raised skepticism among investors, as the stock has performed poorly relative to the semiconductor industry [6] - There is a potential conflict between Elliott's immediate focus on free cash flow-per-share growth and TI's long-term strategy of building excess manufacturing capacity [7]

Texas Instruments (TXN) closed the latest trading day at $194.90, indicating a +0.52% change from the previous session's end. This change lagged the S&P 500's 0.77% gain on the day. On the other hand, the Dow registered a gain of 0.49%, and the technology-centric Nasdaq increased by 0.95%.Heading into today, shares of the chipmaker had lost 0.57% over the past month, outpacing the Computer and Technology sector's loss of 3.05% and lagging the S&P 500's gain of 3.71% in that time.The investment community wil ...

Texas Instruments’ (TXN) shares have rallied 17.6% in the year-to-date period, outperforming the industry’s growth of 7%. The company is benefiting from a strong product portfolio, which is driving its momentum across various end markets.Texas Instruments’ recent launch of the DRV7308 gallium nitride (GaN) intelligent power module (IPM) in order to strengthen its portfolio further, remains noteworthy.The GaN IPM which is designed to aid the development of motor drive systems efficiently, offers over 99% inv ...

In the latest market close, Texas Instruments (TXN) reached $197.44, with a -0.09% movement compared to the previous day. The stock's performance was behind the S&P 500's daily gain of 0.27%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq appreciated by 0.88%.Shares of the chipmaker witnessed a gain of 5.22% over the previous month, beating the performance of the Computer and Technology sector with its loss of 4.82% and the S&P 500's gain of 2.85%.The investment community will be p ...

DALLAS, June 11, 2024 /PRNewswire/ -- Texas Instruments (TI) (Nasdaq: TXN) today introduced the industry's first 650V three-phase GaN IPM for 250W motor drive applications. The new GaN IPM addresses many of the design and performance compromises engineers typically face when designing major home appliances and heating, ventilation and air-conditioning (HVAC) systems. The DRV7308 GaN IPM enables more than 99% inverter efficiency, optimized acoustic performance, reduced solution size and lower system costs. I ...